Treating Customers Fairly?

Friday, 23rd July 2010 12:18 - by Resident IFA

My company is termed by the Financial Services Authority (FSA) as a ‘Small Business’. To this end, we possibly are not quite as high on their list of inspection priorities. That said, it always appears that the ‘dodgy’ Advisers I read that are being struck-off are of the ‘Small Business’ ilk. I suppose the larger firms and banks simply get fined instead?! Anyhow, we have spent some time over the last week fine-tuning certain aspects of our company and record-keeping in preparation for our ‘TCF’ assessment telephone call from the FSA in October. ‘What is TCF?’ I hear you cry. TCF stands for ‘Treating Customers Fairly’. Well, this goes without saying, surely? Not always. The FSA are now focused on ‘Outcomes’ rather than rules. Some criticise this for being wishy-washy and lacking guidance. After all, it is easier to follow rules, isn’t it? The 6 Outcomes are: Outcome 1: Consumers can be confident that they are dealing with firms where the fair treatment of customers is central to the corporate culture. Outcome 2: Products and services marketed and sold in the retail market are designed to meet the needs of identified consumer groups and are targeted accordingly. Outcome 3: Consumers are provided with clear information and are kept appropriately informed before, during and after the point of sale. Outcome 4: Where consumers receive advice, the advice is suitable and takes account of their circumstances. Outcome 5: Consumers are provided with products that perform as firms have led them to expect, and the associated service is of an acceptable standard and as they have been led to expect. Outcome 6: Consumers do not face unreasonable post-sale barriers imposed by firms to change product, switch provider, submit a claim or make a complaint. As an Independent Financial Adviser (IFA), I have to ask myself if I can prove the above via Management Information (MI), and if TCF is embedded within my firm's culture. As always, there are areas we can improve on and have an Action Plan in place to remedy any shortfalls we perceive. One thing I am sure of is that the Client’s best interest is top of our agenda, and that TCF is, and has always been, firmly embedded in the firm’s culture. I am quite looking forward to the FSA telephone assessment. Let’s hope that they also think we are doing a good job and ‘Treating customers fairly’. What about those who provide financial advice to you? Do you feel fairly treated in relation to the above Outcomes? Until next time...